Breaking: SEC Signs $625K Contract With Analytic Firm to Investigate Defi Market
The US Securities and Exchange Commission (SEC) has taken a major step towards regulating the Defi market, just days after SEC chair Gary Gensler said the decentralized finance markets are something they are looking into. SEC has on-boarded blockchain analytic firm AnChain.AI to help the regulatory body regulated the Defi market.
The firm revealed that the SEC has signed a 5-year contract at $125K/year totaling a $625K deal. During a recent interview, Gensler has said,
“There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees…There’s some incentive structure for those promoters and sponsors in the middle of this.”
Victor Fang, CEO, and co-founder of AnChain said,
“The SEC is very keen on understanding what is happening in the world of smart contract-based digital assets…so we are providing them with technology to analyze and trace smart contracts.”
AnChain is a reputed blockchain analytic firm that tracks illicit crypto transactions across exchanges and Defi protocols. The SEC contract started in May.
Will SEC Go After Defi Projects?
The recent statements from the SEC chief about Defi along with the amendments in the Infrastructure bill requires custodians to offer details about all Proof-Of-stake token holders (which is considered near impossible, given the anonymity factor in def), it seems SEC is gearing up for tough measures around the defi market.
Defi gained popularity over the past couple of years, turning into a multi-billion dollar industry. Currently, Defi projects account for $82 billion in assets with the lead decentralized exchange Uniswap processing over a billion dollars in daily transactions. Defining laws around the market is going to be a complex task, but high regulatory scrutiny could also lead to the closure of businesses. SEC’s tough regulatory measures shouldn’t come at a cost of innovation.
- BitMine’s Tom Lee Predicts $12K ETH by Year-End, Calls Ethereum “Wall Street’s Blockchain”
- Just-In: Bhutan Govt Moves Another $47M in BTC Amid Rising Selling Pressure
- Cardano News: Foundation Pledges Eight-Figure ADA Liquidity for Stablecoin Projects
- Bitcoin Price to Continue Falling in Q4, Predicts 10x Research & On-Chain Data
- Will Crypto Market Recover As Bitcoin and Altcoins Test Crucial Support?
- Cardano (ADA) Price Eyes 50% Rally as Foundation Backs Stablecoin Liquidity With 8-Figure ADA
- Ethereum (ETH) Price Faces Pullback Before $10K Surge Amid SEC ETF Approval
- PEPE Coin Price: Analyst Sees Breakout-Retest Pattern- Will It Surge Over 230%?
- Shiba Inu Price Eyes 25% Rally as Outflows Jump and Whales Buy 62B Coins
- XRP Price Rises on mXRP Launch, Recovery Ahead?
- Solana Price Prediction: $836M Whale Transfer Spark Fear of $200 Retest Before 62% Rebound
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
